EU – Baltic States, Latvia, Legislation, Markets and Companies, Telecomunications

The task force will now also include Minister of Environmental Protection and Regional Development Kaspars Gerhards (All For Latvia-For Fatherland And Freedom/LNNK).

The task force will be meeting with representatives from TeliaSonera AB to discuss management of Lattelecom and LMT shares and the companies' development, including reorganization of the companies and other measures necessary to increase their value and improve their operations.

According to the Economy Ministry, the task force was originally set up in March 2012, but its makeup changed after the current government was approved by Saeima. The task force is chaired by Economy Minister Dana Reizniece-Ozola (Greens/Farmers), it also includes Transport Minister Anrijs Matiss (Unity) and Finance Minister Janis Reirs (Unity).

Prime Minister Laimdota Straujuma (Unity) said after the coalition council's meeting yesterday that the task force would have to offer a solution regarding state-owned shares in Lattelecom and LMT by September 1, emphasizing that the matter had to be solved once and for all.

The task force previously concluded that privatization of the state-owned stakes in LMT and Lattelecom would not be in the interest of the nation, but management practices need to be improved at both companies in order for the companies' value to increase.

As reported, Lattelecom board and council proposed in the summer of 2013 that the company could merge with LMT in order to prevent the two companies' value from decreasing and achieve closer synergy between the companies' services and management structures.

Lattelecom was established in 1992, the company was originally named Lattelekom. In 1994, Danish company, which at that time belonged to Finland's Sonera, Britain's Cable&Wireless and the state of Latvia, acquired a 49% stake in Lattelecom. In 1998, Sonera bought Cable&Wireless, and in 2002 it merged with Swedish company Telia, creating TeliaSonera – currently the owner of 49% of Lattelecom shares.

LMT was established in 1992 as the first mobile phone operator in Latvia. TeliaSonera owns 49% of the company's shares", Lattelecom – 23%, Latvian State Radio and Television Center – 23%, and the state of Latvia – 5%.